"Driven by new broadband applications and the resulting need for a secure, reliable, and scalable storage network, Fibre Channel technology has experienced mass market acceptance," Rickey continued. "JNI is positioned well in this growing market with an extensive, easy-to-use product line for both Solaris and Windows."

Under the terms of the agreement, AMCC will pay $7 per share in cash for each outstanding share of JNIC common stock, or about $190 million, and will assume all outstanding JNI employee stock options. As of June 30, JNI's assets included approximately $90 million in cash and investments. The acquisition has been approved by the boards of directors of each company but is subject to the approval of stockholders of JNI and other customary closing conditions and regulatory approvals, the companies reported. The acquisition is expected to close in the fourth quarter.

With more than $1 billion in cash on hand as of June 30, AMCC suggested on a conference call concerning the merger that it may not be finished making acquisitions in the storage space.

"AMCC would not have ambitions in such a space and then stop with the acquisition of JNI," Rickey stated during the call. "You will see more headcount in AMCC and SAN in two years than you will after the JNI acquisition. Whether that comes from acquisitions, hiring, or redeployment of people from carrier-centric businesses is our option."